skip to Main Content

ASC Day 2: Monetary Policy, Entrepreneurship, Security, and Constitutional Order

I don’t have the time to write a whole bunch because I need to prepare for my talk tomorrow. So, here are some of my notes from my favorite lectures of the day and a video wrap up as well:

  • Walter Block and William Barnett – Time Deposits: Fraud and the ABCT
    • Debate that fractional reserve banking is illegal
    • Other side says that FRB notes can be considered contracts
      • Problem: not all contracts can be legitimate
      • Example: I contract with Walter for Walter to murder someone
    • More proper position is property rights
      • Can’t have two people owning 100% of the same thing
    • ABCT: mises originated, Hayek expanded “Monetary Theory of the Business Cycle”
      • Mises called it the circulating credit theory of the trade cycle
    • What we assume when we say that monetary inflation causes the business cycle is that the money is entering the market via credit markets.
      • Government could instead just use printed money to pay off receipts (like salaries)
      • According to Barnett, this would not constitute the conditions that create BC
    • What’s the problem with a demand deposit?
      • Banks are borrowing short and lending long
      • Intertemporal misallocation
      • Lenders want to be more liquid than they want to be as borrowers
      • Dealers work in between
    • Credit has two dimensions: Dollar value, and Time
    • Banks don’t have the right to lend money for longer than which they have the property right for.
      • i.e. I lend $100 for 1 year, bank cannot, praxeologically, turn around and lend the $100 for 5 years
      • This is a credit inflation
    • Time mismatching of borrowers and lenders
      • In example above, no monetary inflation, but credit inflation is happening.
  • Anthony Gregory – Habeas Corpus, Centralism, and Decentralism
    • Most people go back to the Magna Carta
      • But it was 100 years later before we see habeas corpus writs
      • Authoritarian method of law
    • Habeas corpus evolved over time
      • Impetus was to protect high up officials
    • Some moral principle involved, people should be held just for the hell of it.
    • An admirable bottom-up tradition in American colonies
    • By the time of the revolution, all the colonies had
    • Here’s the interesting thing, constitution had habeas corpus but it was a step backwards because the states were already practicing it.
      • Who was it who issued habeas writs in antebellum America?
      • States had the right to issue writs of habeas corpus as a check AGAINST the federal government.
    • Once the FG used writs of habeas corpus against the states, downhill
      • Even some of our more admirable founding fathers suspended habeas
    • Some southern states used habeas to get slaves back.
    • Northern states passed liberty laws about slaves
    • After civil war, interesting reconstruction dynamic
      • On one hand, wanted slaves to have their rights protected
      • But in the next year, it was used to protect a guy who criticized reconstruction. Oops, they didn’t like this.
    • Last straw, 1871
      • Used to be a state check on Federal power.
      • Now a Federal check on state power.
    • What’s unfortunate is that we have moved away from the original design completely.

And here’s footage of what happened today with some summary thoughts from me…

Facebook Comments

Dr. Norman Horn

Norman founded and the Libertarian Christian Institute, and currently serves as its President and Editor-in-Chief. He holds a PhD in Chemical Engineering from the University of Texas at Austin and a Master of Arts in Theological Studies from the Austin Graduate School of Theology. He currently is a Postdoctoral researcher in Chemical Engineering at the Massachusetts Institute of Technology.

Back To Top